Electronic medium allows businesses to operate commercial activities through EDE & EFI, technologies which defines e-commerce operations. Electronic commerce functions as a system which enables customers to purchase items and acquire services through electronic networks which include the internet and computer frameworks.
The remarkable expansion of e-commerce throughout India continues to surge due to enhanced internet connectivity and rising smartphone accessibility together with digital monetary transactions. The surge of online shopping requires and rising smartphones accessibility together with government agencies to protect consumer needs and safety standards.
The Indian legal system for e-commerce consumer protection advanced substantially through past years to established guidelines about digital data security while defining return policies and transactions grievance procedures and transactions clarity rules. This article examines consumer protections regulation in Indian e-commerce through recent developments of vital components and acceptable consumer guidelines.
Legal framework for E-commerce in India
A few laws and regulations control e-commerce and consumer protection in India, including:
Consumer Protection Act, 2019
The main law that describes the consumer rights and the duties of e-commerce sites.[1]
Salient provision of the Consumer Protection Act, 2019
The Consumer Protection Act, 2019, made a few important provisions pertaining to e-commerce:
a) Right of consumers
Consumers are entitled to safety, such that products are free from dangers; the right to be informed, with truthful and comprehensive information about the product; the right to choose, with a choice of products at competitive prices; and the right to be heard, with a right to make complaints and suggestions.
b) Consumer disputed redressal commissions
The act sets up consumer dispute redressal commissions at the district, state, and national levels, which act as adjudicating bodies.
c) Central Consumer Protection Authority (CCPA)
Enacts the CCPA to oversee issues pertaining to consumer rights, unfair trade practices, and misleading advertisements.
d) Product liability & recalls
Sets up a particular mechanism for product liability claims for any injury caused by a faulty product or shortage in service.
Consumer Protection (E-Commerce) Rules, 2020
As an additional regulation of e-commerce operations, the Ministry of Consumer Affairs released the Consumer Protection (E-commerce) Rules, 2020. They supplement the Consumer Protection Act, with emphasis on fair trade practices and transparency.[2]
The consumer protection (E-Commerce) rules, 2020, offer comprehensive framework for e-commerce activities:
a) Product information
The E-Commerce Rules, 2020 stipulate that online sellers must give clear and complete product details to customers. These include the place of origin, information about the seller, price, applicable charges, warranty, and return details. It also mandates true product description disclosures, including specifications and photos. False advertising is prohibited, and the rules act to promote transparency and customer protection. The rules assure informed buying, as they look to boost consumer confidence and e-commerce marketplace fairness.
b) Grievance redressal
E-commerce players must set up effective grievance mechanism they have to appoint a grievance officer who will resolve consumer complaints within a month of receipt.
c) Prohibition of unfair trade practices
Prohibits misleading advertisements, unfair contracts, and other unfair practices that may cause injury to consumers.
d) Data protection
The 2020 e-commerce data protection regulations require e-commerce sites to protect customer information by taking robust security controls. They should guarantee the confidentially, integrity, and availability of personal information, gain explicit consent prior to collecting data, and give open privacy policies. The platforms should also give notice of data breaches to users in a timely manner and ensure the processing of data adheres to the applicable data protection regulations.
e) Transparency
E-commerce sites should make sure that they have clear terms and conditions, such as return and refund policies, and ensure that the description of products is accurate.
The Information Technology Act (IT ACT) 2000
The Information Technology, act 2000 is a seminal legislation that regulates internet use and electronic commerce within India
Major provision of the Information Technology Act, 2000
a) electronic authentication and digital signature
According to the IT Act, digital signatures have legal validity which the integrity and authenticity of electronic documents as well as as online transactions are proven.
b) Regulation of cyber activity
The IT Act specifies multiple cybercrimes and enunciates punishment consisting of hacking[3], theft of identity[4], offences against privacy[5], and publication or transmission of obscene matter through a computer resource.[6]
c) Regulatory bodies
The IT Act, of 2000 provides various authorities for regulation, such as the Controller of Certifying Authorities (CCA) for digital signatures, the Cyber Appellate Tribunal (CAT) for grievances, and the Indian Computer Emergency Response Team (CERT-In) for response to incidents. The Act also authorizes the government to appoint any agency for monitoring, interception, and decryption of data. These authorities make the act effective and cover cybercrime, protection of data, and regulation of electronic commerce.
Recent Trends and Future Developments
The Indian government keeps regulations current to match the ever-changing e-commerce environment. Some of the recent trends and developments are Draft E-Commerce policy seeks to resolve concerns such as data localization, anti-counterfeiting efforts, and the provisions of a level playing field for all prayers in the market. Data protection bill anticipated to introduce stricter guidelines for data privacy and protection, affecting how consumer data is dealt with by e-commerce firms.[7]
Tips for Consumers
Consumers can follow a few precautions to safeguard themselves when shopping online:
a) Check Seller Credibility: Check seller and product reviews and ratings.[8]
b) Read Return and Refund Policies: Read the return and refund policies carefully before making a purchase.
c) Secure Payments: Make secure payments and do not share personal information unless necessary.
d) Report Issues on Time: use the grievance redressal systems offered by e-commerce websites for any complaints.[9]
Guidelines on E-Commerce Released by Department for Promotion of Industry and Internal Trade (DPIIT)
The DPIIT has released guidelines to oversee foreign direct investment (FDI) in e-commerce and ensure competitive fairness.[10]
Key Provisions:
a) Marketplace Model: Only the marketplace model is allowed for e-commerce entities with FDI. Inventory-based models are banned.
b) Level Playing Field: The e-commerce sites must give a level playing field and should not be able to affect the sale price of products and services.
c) Transparency: E-commerce players must give transparent dealings and keep accounts of all the transactions.
Challenges and Enforcement
Challenges in enforcement and consumer awareness remain despite strong legal frameworks. The major challenges are:
a) Awareness: Most consumers do not know about their rights under such laws, so there should be more education and outreach.[11]
b) Enforcement: Strong enforcement of such laws is still a challenge because of the extensive and dynamic nature of the e-commerce environment.[12]
c) Jurisdictional Issues: Cross-border transactions make jurisdictional enforcement complex, requiring international cooperation and agreements.
Conclusion
The regulations on e-commerce in India are governed by a intricate interplay of different laws & regulations with an objective to protect consumer interests and promote digital innovations.[13] As consumers become increasingly educated about their rights and legal provisions available to them, they can shop online more confidently and securely. The process towards an entirely complaint and consumer centric e-commerce space continues and these rules are a step in the direction.[14]
[1] Consumer protection act, 2019, section 4
[2] Ministry of Consumer Affairs, ‘Consumer Protection (E-Commerce) Rules, 2020’ (Government of India, 23 July 2020) Consumer Protection (E-Commerce) Rules, 2020.html 24 March 2025.
[3] Information Technology Act 2000, s 66.
[4] Information Technology Act 2000, s 66C.
[5] Information Technology Act 2000, s 66E.
[6] Information Technology Act 2000, s 67.
[7] Ministry of Electronics and Information Technology (MeitY), The Digital Personal Data Protection Act, 2023 https://www.meity.gov.in accessed 24 March 2025.
[8] Competition Commission of India, Market Study on E-Commerce in India (January 2020) https://www.cci.gov.in/
[9] Consumer Protection Act 2019, s 85
[10] Department for Promotion of Industry and Internal Trade (DPIIT), Press Note No 2 (2018 Series): Review of the Policy on Foreign Direct Investment in E-commerce (26 December 2018) https://dpiit.gov.in/ accessed [25 march 2025].
[11] Consumer Protection Act 2019, s 2(9)
[12] Information Technology Act 2000, s 79.
[13] Press Information Bureau, ‘E-Commerce Rules under Consumer Protection Act 2019’ (Government of India, 23 July 2020) https://pib.gov.in accessed 24 March 2025.
[14] Ministry of Consumer Affairs, ‘Consumer Protection (E-Commerce) Rules, 2020’ (Government of India, 23 July 2020) Consumer Protection (E-Commerce) Rules, 2020.html 24 March 2025.
Author: Prince Rajput is a student at Bihar Institute of Law.
